Nepal Issues e-Passport Contract Letters to Veridos and Mühlbauer Amid IDEMIA Challenge

Nepal’s Department of Passports (DoP) has issued Letters of Intent (LoIs) for two major biometric passport contracts, selecting German firms Veridos GmbH and Mühlbauer ID Services GmbH for the modernization of its e-passport system. The awards are currently under review following a legal complaint from French multinational IDEMIA, which had previously managed Nepal’s e-passport program.

Contract Division and Financial Scope

The DoP structured the tender into two packages. Package I, worth NPR 1.55 billion (approximately USD 11.15 million), was awarded to Mühlbauer for the implementation of a nationwide biometric enrollment system. Package II, valued at NPR 6.11 billion (about EUR 41 million), went to Veridos for the supply and personalization of biometric passport booklets. In total, the two vendors are tasked with delivering 6.4 million e-passports over a five-year period. The first delivery is due within 240 days of final contract signing.

While the LoIs represent a major step forward, they are not yet binding. The contracts will only be finalized once the Public Procurement Review Committee (PPRC) has ruled on IDEMIA’s complaint, filed on June 12, 2025. Until that review is complete, the signing process is on hold.

IDEMIA’s Challenge and Official Responses

IDEMIA has contested the procurement outcome both formally and in public, questioning the transparency of the evaluation process. In a letter dated June 13, spokesperson Alice Ferre argued that currency conversion errors may have inflated the costs of competing bids, stating, “An incorrect exchange rate may have inflated costs unnecessarily.”

DoP officials and procurement experts have rejected the claims as misleading. According to a report in The Himalayan Times, authorities labeled IDEMIA’s assertions “baseless” and accused the company of “deliberate misrepresentation.”

The new deal marks a potential end to IDEMIA’s exclusive role in Nepal’s e-passport issuance, though that outcome hinges on the PPRC’s findings. Previously, IDEMIA had priced its passport booklets at USD 6.83 apiece, down from a variation-order rate of USD 10.13. This was still higher than the rates offered by the winning bidders, according to local reports.

The decision to work with Veridos follows the firm’s success in Bangladesh, where it secured a €340 million contract to deliver e-passports and border systems over a 12-year period. Veridos also recently appointed Bernd Kümmerle as CEO, effective July 1, 2025, amid broader leadership changes.

Transparency and Historical Context

The current tender process has been praised for its competitive structure and transparency. Foreign Minister Arzoo Rana Deuba and Foreign Secretary Amrit Bahadur Rai have been recognized for their roles in ensuring open bidding. This represents a notable shift from earlier controversies. In 2020, a leaked audio recording revealed that then-Communications Minister Gokul Baskota had attempted to negotiate a Rs 700 million (approximately USD 9.3 million) commission in a separate security-printing deal.

If finalized, the new e-passport system will enable Nepal to meet international standards for secure travel documents, aligning the country with a broader global trend toward modernized identity systems.

Sources: Kathmandu Post, The Himalayan Times, Travel and Tour World

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By Ji-seo Kim